WallStSmart

Parker-Hannifin Corporation (PH)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 125% more annual revenue ($20.46B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 17.3%. TDG appears more attractively valued with a PEG of 2.82. PH earns a higher WallStSmart Score of 54/100 (C-).

PH

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.78

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 2.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PH.

TDGSignificantly Overvalued (-60.5%)

Margin of Safety

-60.5%

Fair Value

$826.09

Current Price

$1159.98

$333.89 premium

UndervaluedFair: $826.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PH3 strengths · Avg: 8.7/10
Market CapQuality
$119.59B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

TDG4 strengths · Avg: 9.5/10
Operating MarginProfitability
45.6%10/10

Strong operational efficiency at 45.6%

Debt/EquityHealth
-3.2310/10

Conservative balance sheet, low leverage

Market CapQuality
$65.51B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

PH4 concerns · Avg: 3.0/10
P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

PEG RatioValuation
3.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.7%.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 22.2% and operating margin at 45.6%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : PH

The primary concerns for PH are P/E Ratio, Price/Book, PEG Ratio.

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

PH carries more volatility with a beta of 1.25 — expect wider price swings.

TDG is growing revenue faster at 13.9% — sustainability is the question.

TDG generates stronger free cash flow (772M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PH scores higher overall (54/100 vs 53/100), backed by strong 17.3% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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